Examining The Motivations and Barriers of Donation-Based Crowdfunding Participation in Ghana

Abstract

Donation-based crowdfunding (DCF) is reshaping traditional fundraising by providing small businesses and social causes with accessible, online platforms to mobilize resources. In Ghana, the combination of strong communal values and increasing digital engagement creates a promising environment for DCF. However, its adoption remains limited due to various motivations and barriers. This study investigates the experiences of Ghanaian entrepreneurs and donors to understand what drives or inhibits participation in DCF. Using the Value-Belief-Norm (VBN) theory and a qualitative research approach, the study explores how socio-cultural values, emotional drivers, and digital capabilities influence engagement. Findings show that motivations stem from altruism, community solidarity, and the desire for recognition, with many viewing crowdfunding as a tool for both funding and visibility. However, challenges such as limited digital literacy, mistrust in online systems, and low awareness about DCF platforms hinder broader use. Demographic factors—such as age, education, and location—also play a key role, with younger, urban, and more educated individuals more likely to participate. Despite barriers, there is notable digital curiosity and readiness among Ghanaian entrepreneurs. This research enhances the understanding of crowdfunding in emerging markets and offers actionable recommendations for platform developers, policymakers, and practitioners to foster inclusive financial innovation in Ghana.